Bagmati cuts Ministries to 8, Targets Rs 5 billion savings

Kathmandu-The Bagmati Province government has decided to reduce the number of ministries from 14 to 8 in a major administrative restructuring move aimed at cutting public expenditure and improving efficiency.According to government spokesperson Tamang, the new structure will come into effect from the start of the new fiscal year (mid-July). Until the end of the fiscal year, the existing Council of Ministers will continue to function to ensure smooth implementation of the current budget.
Under the new arrangement, the ministries to remain are: Office of the Chief Minister and Council of Ministers, Ministry of Internal Affairs, Law and Cooperatives, Ministry of Economic Affairs and Planning, Ministry of Drinking Water, Energy and Irrigation, Ministry of Physical Infrastructure Development, Ministry of Agriculture, Livestock, Forest and Environment, Ministry of Health and Social Development, and Ministry of Industry, Tourism, Labour and Transport.Spokesperson Tamang stated that the budget for the upcoming fiscal year will be aligned with the new ministerial structure. The Ministry of Economic Affairs and Planning will introduce new coding systems for ministries and their subordinate offices, ensuring that budget allocations and ceilings are adjusted accordingly.
The restructuring is expected to reduce the number of offices under provincial ministries from 198 to 148, leading to an estimated annual saving of Rs 5 billion in recurrent expenditure. The government plans to redirect these savings toward capital expenditure.To manage staff adjustments under the new structure, the Cabinet has formed an Organization and Management (O&M) committee. The committee will be led by the Provincial Secretary from the Law Division under the Chief Minister’s Office. Members include secretaries from the Ministry of Internal Affairs and Law, and the Ministry of Economic Affairs and Planning, while a Joint Secretary from the Chief Minister’s Office will serve as the member secretary.The committee has been tasked with conducting necessary studies and submitting its recommendations to the Cabinet before the new structure comes into effect.